The application of health economics within portfolio management is not yet widely researched. However, several studies assume a growing importance of the added value of health outcomes within early product portfolio prioritisation in the future. OBJECTIVES: As a first step, to review the current practise in portfolio management and the most common techniques/parameters used to aid internal decision-making. Secondly, to illustrate the potential impact of the "economic dimension" in strategic development decisions using a vaccine industry example. METHODS: A MEDLINE search using the phrases "health/pharmacoeconomics" and/or "portfolio management" or "early modelling" was conducted. This search was augmented by additional Internet searches using various MetaSearch engines. Fifteen papers that matched the selection criteria were obtained. A simple Microsoft EXCEL based portfolio assessment tool for vaccine candidates applying the McKinsey strategy portfolio concept was developed. Apart from "traditionally" used variables, key health economics parameters were additionally included to examine their potential impact on the overall product portfolio matrix. RESULTS: Several papers concluded that human judgment combined with assessments of standard financial parameters and market attractiveness were the most frequently used approaches in portfolio management. Increasingly, and especially with regard to the flood of molecules and technologies due to advances in science, health outcomes parameters are being considered as important decision-making variables in early portfolio assessment. When including these parameters in the portfolio model, the potential significance of health economics in strategic product development decisions can be demonstrated. CONCLUSIONS: This review indicates that the integration of health economics in portfolio management is currently not state of the art. The example underlines the strategic importance of these variables to biotech vaccine companies in the assessment of licensing opportunities, compound selection, and research termination decisions. Further research seems indicated to measure the added value of health economics in portfolio management.